Incheon City Provides 45 Billion KRW in Low-Interest Policy Funds at 1% for Small Business Owners

Loan Support Up to 20 to 30 Million KRW Per Company

On the 6th, the government decided to extend the current social distancing measures?Level 4 in the metropolitan area and Level 3 in non-metropolitan areas?originally scheduled to end on the 8th, for an additional two weeks until the 22nd. During this period, the ban on private gatherings will remain in effect, allowing up to two people in the metropolitan area after 6 p.m. and up to four people in non-metropolitan areas. The streets of Myeongdong were quiet ahead of lunchtime that day.
Photo by Moon Honam munonam@

[Asia Economy Reporter Park Hyesook] Incheon City announced on the 6th that it will urgently provide 45 billion KRW in ultra-low interest policy funds at an annual rate of 1% to support small business owners struggling due to the prolonged COVID-19 pandemic.

The policy funds consist of five special guarantee projects totaling 5 billion KRW: 10 billion KRW for job creation, 10 billion KRW for revitalizing underground shopping malls, 10 billion KRW for youth startups, 5 billion KRW for redevelopment area revitalization, and 10 billion KRW for revitalizing neighborhood commercial districts.

The loan support amount is up to 20 million KRW per business (up to 30 million KRW for underground shopping malls), and Incheon City will cover up to 1-2% of the loan interest, allowing small business owners to receive loans at an annual interest rate in the 1% range.

The loan repayment method is monthly installment payments over 3 to 4 years after a one-year grace period. During the grace period, the city plans to reduce the principal and interest repayment burden and lower the guarantee fee to about 0.8% annually, further easing the financial burden on small business owners.

However, businesses that have used guarantees within the past three months or have already received policy funds are excluded from eligibility. Businesses in restricted industries such as entertainment and gambling, or those with overdue or delinquent loans, are also not eligible for funding.

Applications for policy funds are accepted at each branch of the Incheon Credit Guarantee Foundation, and detailed information can be found on the Incheon Credit Guarantee Foundation website.

Meanwhile, the city has supported 226.4 billion KRW through six rounds of special guarantees for small business owners this year and has also provided 20 billion KRW for the vulnerable small business owners’ Hope Dream special guarantee.

An official from Incheon City stated, "We hope this loan support will be a pillar for small business owners struggling due to the escalation to Level 4 social distancing," adding, "We will make every effort to ensure that policy funds for small business owners are promptly supported in the second half of the year."

This content was produced with the assistance of AI translation services.